The concern of NAN relates to the likely infringement of Rule
184(2)(a) on the status of Mr. Oscar Onyema as the Chief Executive Officer of
Nigerian Exchange Group while also serving as a Non-Executive Director of
Nigerian Exchange Limited.
A statement from Mr. Dele Ajanaku, NAN’s Secretary General
said, “the impending listing by introduction of the shares of NGX Group on the
main Board of NGX ltd with effect from October 13, 2021 vis-a-vis Mr. Onyema’ s
portfolio in the two companies will be a violation of Rule 184(2)(a) on the
status of Mr. Oscar Onyema as the CEO of NGX Group while also serving as a
Non-Executive Director of NGX Limited.”
Ajanaku continued, “Rule 184 (2) states that a securities
exchange shall have a code of conduct for its council members or Board which
shall be approved by the Commission and shall contain provisions that the
council members or Board shall not be staff of a quoted company and its
subsidiaries.”
According to NAN, “The purpose of this provision is to
forestall a situation where a Council or Board member of an Exchange would be
in a position to extend special privileges or exercise undue influence towards
a listed company which he/she works for.”
In the scenario under review, by virtue of his position as
CEO of NGX Group, Mr. Onyema is a staff/employee of the company. Given that he
also serves a non-executive on the NGX Ltd, the Exchange on which NGX Group is
set to be listed, Mr. Onyema would (if permitted to hold both portfolios), be
in contravention of Rule 184(2).
“On the basis of the foregoing, NAN concluded, “it is
recommended that the Commission should request Mr. Onyema to relinquish one of
the portfolios he is currently occupying so as to comply with Rule 184(2).”
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